Last week saw Suncorp break down from what appears to be an ascending triangle. These patterns will often be seen at the top of the trend as the buyers and sellers converge to a higher point, and ultimately the bears win out. Based on this pattern, we should expect to see SUN head down towards the base of this pattern which represents a dollar downside from current levels. However in the short term, we expect a small bounce in SUN towards $13. So that represents an opportunity to either exit the stock, or for the short sellers to enter at a better price. Our preferred regional bank is BEN.
